S.B. 404 amends the Kansas Consumer Protection Act
regarding odometer fraud to raise the amount of a civil penalty
that may be assessed against a violator whose action would
constitute the commission of the crime of tampering with the
odometer of a motor vehicle as provided by K.S.A. 21-3757 from
not more than $2,000 to not more than $10,000. The civil
penalty for a violation of K.S.A. 50-653 (title search disclosure)
remains at not more than $2,000.

The bill would also amend the Kansas Consumer Protection
Act to prohibit "slamming"--the practice of a carrier switching a
consumer's primary long distance carrier or local exchange carrier
or adding other telecommunications services without obtaining the
consumer's express authorization. The bill would include the
following provisions.

Burden of Proof. The carrier requesting the change of carrier
or change or addition of service would have the burden of proving
express authorization by clear and convincing evidence. "Express
authorization" is defined in the bill as an express, affirmative act
by a consumer clearly agreeing to the change in the consumer's
primary long distance carrier or local exchange carrier or to change
or add to the consumer's other telecommunications services.

Prohibited Solicitation and Verification Methods. Local
exchange carriers, telecommunications carriers, or any third-party
verification entity would be prohibited from soliciting or verifying
changes in carrier or changes or additions to service that could be
potentially misleading, deceptive, or confusing. Other prohibited
procedures for inducing a consumer's change in service or carrier
would include: the use of a box to collect sweepstakes, contests,
or drawings to gather authorization for change in carrier or change
or addition to services; and methods not approved by the Federal
Communications Commission or Kansas Corporation Commission.

Carrier's Liability to Consumer. Any carrier in violation of the
Act would be required to refund to a consumer any amounts
collected or credit any unpaid amounts resulting from slamming.
Moreover, the bill would require the carrier to restore to a
consumer any premiums the consumer may have forfeited through
slamming.

Notice of Change. Within three business days of submitting
an order to change a consumer's carrier, the carrier making the
change would have to mail the consumer a letter describing the
authorized change. The letter would have to contain information
specified in the bill.

Penalties. Any carrier in violation of the Act would be subject
to a civil penalty of not less than $5,000, nor more than $20,000,
for each violation. The bill also would authorize the Kansas
Corporation Commission to pursue any other sanctions deemed
necessary to respond to a carrier's violations of the Act. Moreover, the Attorney General would be authorized to pursue
violations of the other sections of the Kansas Consumer Protection
Act.

Background

The bill was recommended by the 1997 interim Special
Committee on Judiciary. The bill was supported by the Attorney
General's Consumer Protection Division and the Kansas Automobile Dealers Association.

The bill would have no fiscal impact.

The House Committee of the Whole amendments were
originally contained in H.B. 2649.

1. *Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.ink.org/public/legislative/fulltext-bill.html.